Register

Executive Home

Pool maintenance all year round

Submitted by Michaela on Wed, 2011-11-02 09:02
Content: 
With the weather heating up around the country, it will soon be time to start spending more time in our gardens, entertaining friends at home with braais and parties by the pool.
 
This presents an opportune time to remind your clients that swimming pool maintenance should by a top priority all year round, as claims determined as a result of poor maintenance or neglect over the cold winter months are unlikely to be covered. Advise your clients now so they can start upkeeping their swimming pools to ensure they are perfect for those hot days.
With the weather heating up around the country, it will soon be time to start spending more time in our gardens, entertaining friends at home with braais and parties by the pool.
 
»

Despite my recommendation, my client has said they do not want a valuation conducted at their house. Is it compulsory?

Submitted by Michaela on Wed, 2011-07-06 12:09
The voluntary valuation of building and inventory service of contents are not compulsory. We do however highly recommend that your client opts for these services for the following reasons:
  • We cover the upfront costs of the valuation and inventory exercise;
  • In return, the Average condition is waived from the policy, so all claims are paid ground up without unfair adjustments;
»

My client has contacted me to say that their house is suffering from subsidence damage. Are they covered and if not, does MUA offer full or limited cover for subsidence and landslip damage?

Submitted by byrnie on Mon, 2011-04-11 20:58
MUA gives full cover for subsidence and landslip.  We do not charge an extra premium for this additional cover, however; it is necessary to underwrite the risk. 
 
MUA therefore requests that the insured completes a subsidence and landslip questionnaire, whereafter the risk will be assessed by an MUA underwriter and then full cover will be granted.
 
»
  • 90 reads

My client recently had a serious accident at work which has left him physically disabled and he now has to use a wheelchair to get around. He has asked me if his insurance policy will help to pay for any modifications to his house to accommodate this?

Submitted by byrnie on Mon, 2011-04-11 20:51
There is an extension under the Building, House Contents and Motorpolicy that can assist in the event of necessary changes to a home/vehicle due to physical injury.
 
This would be effective in the event of the policyholder having to use a wheelchair for moving around, following a physical injury.
 
The wording, adapted to include both home and motor is based on the following:
 
»

Corruption takes the sheen off jewellery insurance

Submitted by byrnie on Wed, 2011-03-16 20:45
Image/Video: 
Image
Short description: 

Dubious practices by certain suppliers within the jewellery industry means that some policyholders are at risk of losing out when filing claims for lost or stolen items. As a result, it is important that clients are made aware of the potential dangers when insuring their jewellery and how to overcome them.

Content: 
Dubious practices by certain suppliers within the jewellery industry means that some policyholders are at risk of losing out when filing claims for lost or stolen items. As a result, it is important that clients are made aware of the potential dangers when insuring their jewellery and how to overcome them.
 
One of the common ways that clients sometimes suffer at the hands of disreputable jewellers is having their lost or stolen items replaced with an item of lower spec than the jeweller actually quoted on. For example, a jeweller may attempt to win business by providing the cheapest quote to replace a diamond of 0.60 carats. However, when they actually provide the replacement, the diamond is only 0.59 carats. While the weight difference is minimal, the value between these two is hugely different.
 
These sorts of practices can occur at many levels from the jeweller not replacing the item correctly, to the claims staff at an insurer favouring certain suppliers to the consumer themselves filing a fraudulent claim. However, despite this it can be a good idea for brokers to advise their clients of the potential risks involved when insuring expensive items of jewellery.
 
For example, certain policies do not require insurers to replace lost or stolen jewellery using the original supplier. Being unable to use their original jeweller or receiving a replacement item that is perceived to be inferior to the one that was lost or stolen, can be a key reason in the breakdown in relationships between advisers and clients, who often feel betrayed by this practice and tend to blame their brokers. As an adviser, it can be a good idea to highlight this upfront to clients, especially if they have specified particular pieces of jewellery on their policy.so that they can choose to use their original jeweller if they so wish.
 
However, clients should also be aware that using the original jeweller is still no guarantee. Insurers often have a panel of jewellers they approach for quotations, who they can audit at any time. As a result, if a piece of jewellery is replaced with a lower spec product by one of these recommended jewellers, your client will have recourse to approach their insurer. However, if clients insist on choosing their own jeweller, they may find that they do not have this right to recourse.
 
To give clients the best level of protection possible, it can be a good idea to suggest they keep a detailed inventory of all jewellery items including where they were manufactured; to obtain valuation certificates from reputable jewellers when insuring; and to insist upfront that replacement is done by the original jeweller who manufactured the item if so wished.
 
Clients should also be made aware that some insurance companies have restrictions in their policies. For example, they may impose a limitation of insured amounts if the client is not in possession of a valid valuation certificate and many now have locked safe warranties, whereby clients must keep items such as expensive jewellery over a certain value in a locked safe when not worn.
 
Corrupt practices are not just found in the insurance or jewellery industries, but across all industries. However, if you make your client aware of the risks they are then able to arm themselves with all the necessary information to make sure that they do not fall foul of disreputable providers.
 
Losing a piece of jewellery can be traumatic, as if often tends to have sentimental as well as monetary value attached, so it is important that if it does happen, at least your client has the peace of mind of knowing that they can have the item replaced properly.
 
 
»
  • 121 reads

Guiding clients through troubled waters

Submitted by byrnie on Wed, 2011-03-16 20:33
Image/Video: 
Image
Short description: 
While the issue of climate change has been downplayed to some extent in South Africa, it is already having a major impact on people, including their ability to insure themselves against potential losses. As a result, it is essential that brokers begin familiarising themselves with the risks involved in order to ensure that the needs of their clients are adequately met.
Content: 
While the issue of climate change has been downplayed to some extent in South Africa, it is already having a major impact on people, including their ability to insure themselves against potential losses. As a result, it is essential that brokers begin familiarising themselves with the risks involved in order to ensure that the needs of their clients are adequately met.
 
An increase in the frequency and severity of extreme weather patterns combined with rapid urbanisation without sufficient drainage infrastructure has dramatically heightened the flood risks for certain regions in the country, such as the Southern Cape and along the West Coast.
 
While it may not be widely known amongst the general public, these factors have resulted in insurance companies often being unwilling to provide cover for, or even quote on, flood related risks in these regions.
 
A recent case in point of which I am aware is that of a new homeowner in the Breede River area in the Western Cape, who found that he was unable to obtain flood cover on his newly purchased R3-million property, as it stands in an area that is prone to flooding on a regular basis. Not only is he now exposed to significant risk, but the value of his property has been severely eroded.
 
This situation speaks directly to the relationship that should exist between broker and client. It is one whereby the client will not make any significant purchase before consulting with his broker to establish the nature and extent of any possible risks.
 
Had this client’s broker advised him to have a full and comprehensive risk assessment done of the property before purchasing, it would have highlighted these issues and he would have had the opportunity to walk away from, or re-negotiate, the deal.
 
This is not an isolated case. Increasingly, we are seeing that properties located in coastal areas or those near large rivers or dams are running similar risks. It is vital that all brokers operating in these kinds of locations explain the risks to their clients and insist on a flood assessment being done as a matter of necessity.
 
Insurance companies already have sophisticated processes and models that assess and measure flood risks and are more than happy to share this knowledge in order to educate their brokers on the risks that their clients could face. It is therefore crucial that brokers take the opportunity to request this information from insurers.
 
While some may dismiss those warning of climate change as “alarmists”, there is evidence to back up these claims. According to research commissioned last year by the Association of British Insurers, a 4°C rise in average global temperatures could increase the average annual insured loss caused by floods in Great Britain by 14% to £633 million. The report suggests that in order for insurers to comply with minimum capital requirements, insurers would need to add a further £1.9 billion to the £5.9 billion capital they currently hold to cover inland flood losses.
 
While South Africa – for which comparative figures are not yet available – has a more moderate climate and is somewhat protected from the extreme weather patterns seen in other parts of the world, we have certainly seen an increase in the frequency and severity of floods and storms in recent years such as those that battered False Bay in 2008.
 
A report recently published by Gregg Oelofse - environmental expert and Cape Town city’s head of environmental policy - on rising sea levels, suggested that the Mother City can expect even larger storms in the future, which will see even heavier amounts of rainfall, putting coastal areas at an even higher risk.
 
Oelofse’s report highlight areas that are already susceptible to a rise in sea levels include Camps Bay, Glencairn and the Strand beachfront. This suggests that the homeowners who are often most vulnerable to the impact of climate change appear to be at the top end of the market, such as owners of ocean front properties.
 
While debate about climate change and changing weather conditions may yet rumble on for a number of years, it is clear that for an increasing number of South Africans it is already becoming a harsh reality. I believe that brokers have a responsibility to guide their clients through these troubled waters.
 
 
 
»
  • 109 reads

South African women underestimate the cost of their wardrobes

Submitted by byrnie on Wed, 2011-03-16 20:31
Image/Video: 
Image
Short description: 

The release of Sex & the City 2 earlier this year once again highlighted the attraction of designer clothes and accessories to South Africa’s women. However, with the majority of these women vastly underestimating how much their wardrobes are actually worth, it is vital that our female clients understand the pitfalls of not insuring their wardrobes for the true cost of replacement.

Content: 
The release of Sex & the City 2 earlier this year once again highlighted the attraction of designer clothes and accessories to South Africa’s women. However, with the majority of these women vastly underestimating how much their wardrobes are actually worth, it is vital that our female clients understand the pitfalls of not insuring their wardrobes for the true cost of replacement.
 
The regular assessments we make at MUA of our client’s possessions have shown that about 90% of women – particularly in the high end market – significantly underestimate the cost of their wardrobes, estimating them to be just half of their actual value.
 
Underinsurance is not just a local trend. There seems to be a global tendency towards underinsurance in women’s wardrobes with a recent study in the UK by British insurer Liverpool Victoria revealing that the average woman in the UK only values the contents of their wardrobes at about £1,840 (R22,000). The true cost is actually around four times higher at £7,000 (R84,000).
 
The main cause of this stems from the fact that insurance values are calculated on the replacement cost of items, so a designer suit that would have cost your client R2 000 a few years ago, will probably now cost in the region of R10 000 to replace. This issue of replacement cost is something that the public often don’t take into consideration, and in our experience is an issue that clients need to have explained to them.
 
Of course, while it is quite rare that an entire wardrobe would need to be replaced, should a client suffer a break in or fire, it is vital for them to have apportioned the correct replacement value to their wardrobe to ensure everything can be replaced if necessary.
 
There are various tips you can employ to help clients work out the true cost of their wardrobe. One of these is to divide the clothes into sections such as business, casual, evening and sports. This should help the client to have a better idea of what clothes they actually have so that they can make a more accurate valuation. This also helps to highlight those items that one forgets about but refuses to throw away.
 
If your client also has a large number of expensive or designer outfits, it can be a good idea to suggest a professional valuer to assist them in the process. At MUA we provide a professional valuation service to all of our clients, so that they know exactly how much their wardrobes are worth.
 
It is easy to underestimate the value of a woman’s wardrobe, especially if the clothes were bought many years ago. However, by being proactive your client will end up saving thousands in the long run and will truly see the value of their broker.
 
Another addition to insurance is cover for their handbag and its contents. It has become quite acceptable for women to spend large amounts on expensive designer branded handbags, in line with what was spent on jewellery pieces in the past.  A designer handbag can cost thousands itself, before one even assesses the value of its contents such as keys, make-up, MP3 player, cell phone and wallet.
 
Insuring a handbag is a relatively cheap addition to any policy but it is crucial for all women and it is a suggestion that your female clients will be hugely appreciative of should they ever have the need to make a claim.
 
A broker that takes the time to explain these issues and obtain a proper valuation for their client’s personal items is not only able to highlight their own worth to their client, but they also keep their customer book bulging as much as their client’s wardrobes.
 
 
 

 

»
  • 114 reads

Corruption and jewellery insurance

Submitted by byrnie on Wed, 2011-03-02 00:00
Image/Video: 
Image
Short description: 
Find out how people fall victim to dishonest jewellers and understand how you should ensure that the replacement value you receive for the item of jewellery matches up to the original replacement value of the item.
Content: 
Find out how people fall victim to dishonest jewellers and understand how you should ensure that the replacement value you receive for the item of jewellery matches up to the original replacement value of the item.
 
 
»
  • 405 reads

Understanding The Jewellery Market

Submitted by Christelle on Tue, 2010-11-30 00:00
Content: 
Insuring jewellery against loss or theft is commonplace in South Africa. Unfortunately most consumers are unaware that the onus to insure their jewellery at accurate replacement values rests on their own shoulders.
 
Dex Kotze, CEO of Jenna Clifford Jewellers, says the replacement value at which one needs to insure their jewellery is directly linked to the Rand/Dollar exchange rate. The reason being that gold trades internationally in dollars and the price fluctuates on a daily basis.
 
“Over the long term, diamonds and other precious gemstones have proven to increase considerably in value and it is vital for the insured to guard against underinsuring assets that generally have an emotional attachment linked to them due to the receiving of jewellery as a gift from a loved one, which later becomes a family heirloom,” says Kotze.
 
In order for an insurer to replace an item, an authentic valuation document is required. Reputable jewellers will only issue jewellery valuations based on actual selling prices of items. Unfortunately the retail industry is rife with some retail merchants who mark up valuations to counter the discounts passed on to insurers.
 
Kotze says brokers and insurers should guard against the following when assessing a client’s jewellery valuation:
  • Ensure there is a Rand/Dollar exchange rate on the valuation certificate
  • Ensure the date of purchase or evaluation is on the valuation
  • Ensure there is a proper description of the jewellery item, with;
    • Specific reference to caratage and weight of gold, 18ct or 9ct
    • Proper identification of precious gemstones and reference to independent laboratory certificates of diamonds
    • Proper reference to the four C’s of a diamond, i.e. colour, cut, clarity and carat
    • Ideally a copy of the purchase invoice should accompany the valuation certificate that is submitted to the broker
  • In the event that a jeweller purely values a client’s jewellery, brokers should ensure that the jeweller that does the valuation is qualified to do so
  • At retail level, not all staff who work in the jewellery industry are qualified to evaluate jewellery. Brokers should ascertain by asking questions to their clients
»

Jenna Clifford – Special Offer

Submitted by Guest on Tue, 2010-11-30 00:00
Image/Video: 
Image
Short description: 
Jenna Clifford is offering a free valuation service to the clients of MUA brokers for any jewellery articles with a value in excess of R40,000.
Content: 
Jenna Clifford is offering a free valuation service to the clients of MUA brokers for any jewellery articles with a value in excess of R40,000. To combat fraud, clients will be required to take the actual jewellery to a Jenna Clifford store as valuations cannot be legitimately completed without inspection of the jewellery.
 
Another service supplied by Jenna Clifford is the digital capturing of the jewellery that can be submitted to the client and broker for record purposes.
 
»
  • 122 reads
Syndicate content